Chicago Board of Trade wheat futures rebounded to near a four-month high on Wednesday on concerns about the fate of crops in several key regions, including the Black Sea, Australia and Argentina. CBOT corn followed wheat higher and garnered additional support from short-covering, while soybeans gained on brisk export sales of the US crop, including a sale on Wednesday of 120,000 tonnes to Russia.
Slow farmer selling of corn and soybeans despite active harvesting of each crop in the United States also contributed to the advances of both grains' futures. At 9:29 am CDT (1429 GMT), Chicago Board of Trade December wheat was up 7-3/4 cents per bushel at $7.08-1/2, December corn was up 4 at $4.42-1/4 and November soybeans were up 10 at $13.12-1/4.
Technical traders cited chart resistance for the CBOT December wheat contract at its 200-day moving average of $7.12 per bushel. Traders said the wheat market, which has risen four out of the past five trading sessions, was getting significant attention as CBOT spot wheat futures have gained 4.7 percent for the month.
Analysts expect US milling wheat to gain a bigger share of the global market, with Brazil seeking more imports as supplies run out in the Black Sea region after recent robust sales. Although corn futures held firm on Wednesday, gains were slowed by active harvesting of the US crop and reports of bigger-than-expected yields. The market is braced for a likely record large corn harvest and a rebound in US supplies from this season's 17-year low to an eight-year high next year.
The big demand for US soybeans and slow farmer selling continues to buoy the soybean futures market. However, US farmers are harvesting what is likely to be the fourth-largest soy crop ever, a factor that is slowing price advances in the futures market. The bellwether November contract on Wednesday reached a peak of $13.18-1/2 per bushel before easing back.